Sonatrach has signed two deals for developments around the Gassi Touil project, 150 km southeast of the Hassi Messaoud hub. The Algerian company announced the deal on December 30, with contracts being awarded to Cosider Pipelines and a Sonatrach subsidiary, l’Entreprise Nationale de Grands Travaux Petroliers (ENGTP), which translates as the National Company for Large Petroleum Works.
Production from these two contracts, which cover six fields with 47 wells, is around 12.3 mcm per day, Sonatrach said.
The Cosider contract was worth 20.98 billion dinars (US$176 million) and is scheduled for delivery by December 2020. The engineering, procurement and construction (EPC) work consists of a network to connect 25 wells with an existing processing plant at Rhourde Nouss. Throughput will be 7 mcm per day, Sonatrach said.
The second EPC contract, with ENGTP, is worth 32.49 billion dinars (US$273 million), with delivery at the same time as the Cosider work. This contract will link up 22 wells to an existing plant at Gassi Touil, with total production of 5.3 mcm per day.
Both contracts cover work from engineering to on-site assembly, testing and commissioning.
First gas flowed from Gassi Touil in February 2014. Gas flows into the project from 52 fields, via 360 km of pipeline, with exports going to the Arzew LNG plant.
In related news, the Algerian cabinet approved a number of new contracts and amendments at the end of 2018. A report from the APS news agency said deals had been affirmed with Total, Eni, Equinor and Indonesia’s Pertamina.
Eni announced a deal for three concessions – Sif Fatima II, Zemlet El Arbi and Ourhoud II – in the North Berkine Basin in late October. The Italian company has a 49% stake in the areas, which cover 8,500 square km, while Sonatrach has 51%. The blocks are estimated to hold 145 million boe, with Eni saying production should start by the end of 2020.